New car sales in Brazil dropped 7.3% month-over-month in August 2025 to 225,400 units, reflecting weaker consumer demand amid high interest rates and rising defaults. Passenger car sales fell 5.2% to 172,300 units, light commercial vehicles decreased 12.4% to 42,400, and truck sales slumped 15.9% to 8,900, marking the most pressured segment due to tighter credit and slowing economic activity. The domestic truck market has been contracting since April, while bus sales also plunged 27.8% to 1,720 units. The daily sales average of 10,700 was the second lowest this year compared to 2024. Year-to-date registrations rose just 2.8% to 1.668 million units, showing stagnation in overall growth. Meanwhile, imports gained 12.1%, with China overtaking Argentina in August as Brazil’s top vehicle supplier for the first time in history.